Notwithstanding the provisions of § 28-33-25 and § 28-33-26, in cases where liability of the employer for payment of workers’ compensation benefits has not been finally established, the parties may submit a settlement proposal to the workers’ compensation court for approval. If, upon consideration, a judge of the workers’ compensation court deems the settlement proposal to be in the best interest of the parties, including the employee, employer, and the insurance carrier, the judge may approve the settlement. Payment by the employer or insurer shall not be deemed to be the payment of workers’ compensation benefits, but shall be considered a compromise payment of a disputed claim. The settlement and payment pursuant to it shall not be subject to liens set forth in § 28-33-27(b) and must be paid within fourteen (14) days of entry of an order to pay or the date(s) upon which payment(s) is/are due pursuant to a court order, and a penalty of one hundred dollars ($100) shall be assessed for every day the payment is delinquent. Upon payment, the employer and insurer shall be entitled to a duly executed release that fully and finally absolves and discharges the employer and insurer from any and all liability arising out of the claimed injury.